Page 15 - annual report 1402

Power Market
Annual Report 15
1402

Payments to Sellers
Capacity Payment

• To all the units ready to produce Energy
• Based on available capacity, not used capacity
• Motivational factor for being available during peak hours
In order to attract and retain adequate resources for reliable operation of
the energy market, revenues from energy, ancillary services and capacity
must be adequate to cover the overall cost of power plants. The capacity
payment plays vital role of assuring the revenue sufficiency of the suppliers
as well as reducing the magnitude of inappropriate price volatility.

Energy Payment (Market Based)
• To those units accepted in the market
• Based on the produced energy
• Based on the hourly price (As offer price / Pay as bid)
• Price Cap for offer price
Ancillary Services
• non-competitive environment and based on regulated tariffs
• Frequency Regulation Payment
• Black start
• Reactive power

Transmission Service

Regional Electricity Companies (REC) are the transmission owners and
paid for the transmission services they provide. Payment for transmission
services is based on capacity and energy flow. Transmission lines and
power transformers are subject to payment based on their available
capacity and also the energy passing through them. Total transmission
costs are allocated to all buyers and sellers to remunerate RECs.

Buyer’s Bill

It is worth mentioning that beside their role in transmission services,
Regional Electricity Companies (REC) act as the suppliers for high voltage
consumers. Hence, in spot market, RECs and electricity distribution
companies (EDC) are the registered buyers in the spot market. The
buyers that purchase energy from spot market will pay hourly market
average price.